Jokowi agrees to relax deadline of tax amnesty

JAKARTA. President Joko "Jokowi" Widodo has agreed to relax the tax amnesty's first period deadline, which sees the lowest penalty payments and which ends on September 30, following talks with economists and businessmen at the State Palace Thursday evening.

After the meeting, the Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan Roslani said the government had agreed to give additional time to businesspeople who wanted to avail of the tax amnesty in the first phase to iron out administrative matters.

"Previously, the deadline for the first phase was September for taxpayers to submit all of the data and the redemption, but now they can submit the redemption first and the administrative matters can be later in December," Rosan said at the State Palace on Thursday.

He said the government would issue the regulation on the extension of the first period. "It was promised there would be [such a regulation]. Jokowi said it could be done," he went on.

In addition to Kadin members, prominent businesspeople such as Aburizal Bakrie, Harry Tanoesudibyo, Surya Paloh, Franky Wijaya, Arifin Panigoro, Erwin Aksa and Dahlan Iskan also attended the meeting.

Earlier in the afternoon, Gadjah Mada University economist Tony Prasetiantono said an extension was necessary because since its implementation in July, the Directorate General of Taxation seemed not to be ready, which led to differences in perception between the government and taxpayers. On the other hand, businesspeople who wanted to join the program needed time to consolidate.

"The President seemed to agree with us. It's possible to extend, whether for a month or until the end of the year," Tony said after a lunch meeting with Jokowi at the State Palace on Thursday.

"I think a month’s extension is enough," he said.

(Ayomi Amindoni)